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US-Canada Trade Tensions Escalate as Trump Cancels Talks Over Ontario Advertisement

Strategic Insights

— 2 min read

Canada's efforts to ease the impact of Donald Trump's tariffs on its economy took a hit on Thursday, after the US president lashed out at a new advertisement released by the Ontario government featuring former president Ronald Reagan. The advertisement aims to persuade Republican voters in the US to pressure their lawmakers to ease the tariffs, which have had a devastating effect on Canada's steel and aluminum industries.

The ad was launched by Ontario Premier Doug Ford, who has been critical of Trump's tariff policy. The advertisement, which is set to appear on mainstream US channels, features a clip of Reagan speaking about the dangers of tariffs in a 1987 address. In the ad, Reagan says, "Over the long run, such trade barriers hurt every American, worker and consumer. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars." However, it appears that the ad has misrepresented Reagan's original speech, splicing together different sections to make the argument stronger and more persuasive.

Key Takeaways:

  • The Ontario government has spent $75 million CAD (US$54m) on the advertisement, which will air on US channels including Bloomberg and Fox News.
  • The ad campaign aims to persuade Republican voters in the US to pressure their lawmakers to ease the tariffs, which have had a devastating effect on Canada's steel and aluminum industries.
  • The advertisement has been criticized for misrepresenting Reagan's original speech, with the Ronald Reagan Presidential Foundation & Institute saying that the ad "misrepresents the Presidential Radio Address" and did not seek or receive permission to use and edit the remarks.
  • Trump has accused Canada of trying to interfere with the US Supreme Court's decision on the legality of his tariffs, and has terminated all trade talks with Canada over the issue.
  • The US-Canada trade relationship has been strained due toifferences over tariffs and trade policy, as well as the US's highly-personalized approach to international policy.
  • The advertisement has created an environment in which the discourse between Washington and Ottawa is also very much about domestic politics, especially on the Canadian side.

Statistics:

  • The advertisement is set to appear on mainstream US channels, including Bloomberg and Fox News.
  • The Ontario government has spent $75 million CAD (US$54m) on the advertisement.
  • Since 2022, US Customs and Border Patrol data show that less than 0.1% of fentanyl seizures are attributed to the Northern US Border or crossing into the US from Canada.
  • US goods and services trade with Canada totaled $909.1 billion in 2024.
  • Over 77% of Canada's exports go to the US.

Sources:

  • [https://www.aljazeera.com/news/2025/10/23/trump-terminates-trade-talks-with-canada-over-reagan-advertisement](https://www.aljazeera.com/news/2025/10/23/trump-terminates-trade-talks-with-canada-over-reagan-advertisement)
  • [https://www.canada.ca/en/privy-council/services/publications/canada-fentanyl-czar-interim-report-june-2025.html](https://www.canada.ca/en/privy-council/services/publications/canada-fentanyl-czar-interim-report-june-2025.html)
  • [https://www.ustr.gov/countries-regions/americas/canada](https://www.ustr.gov/countries-regions/americas/canada)

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